Free sample invoice format

This query is : Resolved

SUNIL KUMAR PATTUVAKKARAN (Querist)
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14 August 2018 Dear Sir,

If we are distributing the free samples items only to the customers. How to make invoice, that is my doubt is , we wants to show the rate and total value of free sample supplied?
These free samples are received from our main distributor( but they issued a bill to us by showing free samples , shown rate , total bill amount as Taxable amount) Is this correct?

its mandatory to keep stock register for this free sample( to show free sample received to us, we are also distributed as free sample), and how accounting properly ?

Thanks for an immediate reply....

Rajesh Kumar

Rajesh Kumar (Expert)
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15 August 2018 Under GST, a supply is taxable only when it is made for a consideration. Thus no GST is required to be paid on free samples. Therefore, preparation of invoice, tax calculation etc on free samples is not correct.

The problem is these when inputs on which credit is taken is used in free supply. In that case there may be possibility of credit reversal.

However, in your case you are receiving free samples from main distributor, you are not taking any credit on such free samples. Thus you can distribute these samples freely without any GST implication, except that you just keep a simple record.